‘Serious offers’ for Rex to be revealed as a proposal to relocate airline to Canberra is ruled out

Rex administrators are set to provide details of offers for the airline within days, after an 11-month search.

The future of Rex Airlines is looking brighter, with administrators EY expected to name a number of serious bidders for the operation in coming days.

With June 30 looming as the deadline for the 11-month old administration, a second sale process is close to being finalised which will prevent the airline falling into government hands.

Rex was placed into administration on July 30, 2024, with debts in excess of $500m, prompting the immediate grounding of 737 operations and the sell-off of various parts of the business.

The regional airline and its fleet of ageing Saab 340s is about all which remains of the company, but the critical nature of the routes operated has seen the Albanese government indicate it would acquire Rex if no-one else did.

Although EY remains close-lipped on the contenders, it’s understood Sydney’s Renaissance Partners has been ruled out for the second time, to the frustration of partner Andrew Cochrane.

Mr Cochrane said Renaissance merely wanted to have their proposal put before creditors so they could decide on the bid.

Under the Renaissance proposal, Rex’s base would be relocated from Sydney to Canberra, and creditors asked to take shares in the airline, in lieu of repayment for the first three years.

The fleet of 30-year-old Saab 340s would be maintained until electric aircraft were available to operate Rex’s regional routes in “another decade or so”, Mr Cochrane said.

EY refused to comment on the proposal but it’s understood the administrators felt the bid was lacking in credibility.

Rex’s future seems assured as administrators prepare to reveal key offers to creditors. Picture: William West/AFP

Mr Cochrane said it was the job of the administrator to present offers to creditors, and he believe the Renaissance proposal was “a compelling offer”.

“We are doing this because it needs to happen,” said Mr Cochrane.

“I’m a country boy in New South Wales, I’ve flown on Rex all my life and I understand the importance of connections to the country.”

He claimed the bid had the backing of a major investment bank, and would involve up to $100m in finance for the relisting on the ASX, and the relocation to Canberra.

“You’ve got a huge amount of efficiency that opens up when you put something at the centre of the regions rather than the edge of it,” Mr Cochrane said.

“You get away from the curfews and the slots and the all the issues associated with Sydney. “You bring it to Canberra, a 24-7 airport with plenty of access and plenty of opportunities for Rex to do its job more efficiently and provide a better customer service.”

Sydney-based private equity firm Anchorage Capital Partners, headed by Simon Woodhouse, was also believed to be bidding for Rex, and West Australian regional airline Nexus has also shown interest.

EY required all bidders to sign a nondisclosure agreement which prevented them from discussing their offers publicly.

Other parts of Rex sold off include the aeromedical business Pel-Air, a 50 per cent stake in National Jet Express, a flight simulator centre and some property.

Ten Boeing 737 jets operated by Rex were returned to lessors, with Virgin Australia snapping up three of them.

Prior to administration, Rex shares last traded at 56.5 cents on the ASX, amounting to a market value of $64m.

Originally published as ‘Serious offers’ for Rex to be revealed as a proposal to relocate airline to Canberra is ruled out